Crackdown on 'rogue' firms 'robbing' pensioners in benefits scam following surge in claims

Published: 19:15 EDT, 25 October 2026 | Updated: 19:15 EDT, 25 October 2026 Ministers are set to ban 'rogue' firms from charging pensioners to help them receive disability benefits following a surge in claims.Work and Pensions Secretary Pat McFadden has drawn up plans for a crackdown on firms billing pensioners up to £1,300 a year to help them claim Attendance Allowance.The move follows a fivefold increase in the number of applications for the benefit made via claims management firms.Writing in the Daily Mail, Mr McFadden said some pensioners in their 80s are left in tears over their dealings with the firms, which can charge upfront fees or ongoing payments worth more than 20 per cent of the claim.In some cases, people have found that details have been submitted without their knowledge to support benefit claims. 'In the most serious cases, this amounts to fraud,' Mr McFadden said.He said it was 'unacceptable that rogue companies are charging people significant fees for support they are entitled to.'Our actions will hold these companies to account and make sure people know that free, independent support is already available through trusted organisations,' he said. 'The welfare state exists to support those in need, including vulnerable pensioners. It's not there for private companies to profit from.' Following a surge in claims, Work and Pensions Secretary Pat McFadden will ban 'rogue' firms from charging pensioners to help them receive disability benefits Under a new code of conduct, firms will be barred from charging fees to submit claims on behalf of others. Claims management firms have operated around the benefits system for years but government sources said ministers have become alarmed that some firms are deliberately targeting vulnerable people, often in their 80s, to make money.The number of applications for Attendance Allowance submitted via claims management firms has increased fivefold in the past 12 months, rising from a few hundred to thousands.Attendance Allowance is a benefit paid to pensioners who need help with personal care because of an illness or disability.It has a rate of £76.70 per week for those who need frequent help during the day, rising to £114.60 per week for those who need help day and night.Government sources said ministers are prepared to change the law to ban companies from charging fees to submit claims if they fail to comply with the new code of conduct.Ministers are also funding an advertising campaign highlighting the availability of free benefits advice.READ MORE: PAT MCFADDEN: These rogue opportunists MUST be held to account